Financial planning for your Florida retirement
Florida’s warm climate, natural attractions and cities filled with fun activities makes it an ideal location for people to retire. In fact, Florida is such a popular retirement destination that roughly 20% of the population is aged 65 or older.
Whether you have lived in Florida for a long time or are planning to retire there from another state, it is important to know what you are getting into. On average, total retirement spending in Florida amounts to $1,186,139. According to the same USA Today article, the average monthly cost of home ownership for senior citizens is $494 per month.
Whether your retirement goals are beneath or surpass these averages, it is important to have a strategy for your retirement. The best time to start planning is now.
Planning for your Florida retirement
- Balance your portfolio according to how close you are to retirement — Everyone’s retirement strategy is different. However, people who are nearing retirement usually make more conservative investments to reduce their risk of loss. Those who are still years away from retirement can afford to risk more and recover from a loss.
The benefit of high-risk investments is that they can lead to higher profits. However, ultimately how much you are willing to risk with your investments is up to you.
- Determine how much you need to save — Make an estimate of how much you will need to live off according to your goals. Factor in everything you can think of, including housing, transportation, food, travel, health care, dining out, utilities and day-to-day expenses.
As mentioned earlier, the average total retirement spending in Florida is $1,186,139. Your goals may require more or less than this, but this amount helps to serve as a good indicator of how much you ought to have saved.
- Estimate your taxes — Many people who save for retirement through a 401(k) and/or a traditional IRA enjoy the benefit of not paying taxes on their contributions. However, taxes will be owed when making a withdrawal. It is important to factor these taxes into your strategy to help make sure you are able to stick to your goals.
Try a retirement tax calculator like this one from AARP.
Talk to a ProVise CFP® professional about your Florida retirement plan
Planning for your retirement is like trying to write a novel in a language you barely understand. The financial landscape is constantly shifting, and rules and regulations frequently change. A financial advisor can work closely with you to help you maintain a retirement planning strategy that works for you. At ProVise Management Group, we help you focus more on enjoying your retirement and less on worrying about your funds.
Our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about balancing your portfolio? Contact ProVise today to schedule a complimentary consultation.